4:24 AM
SEBI gets new software tools for fraud detection, probes
WITH an aim to beef up its capabilities to detect frauds and bring scamsters to book. SEBI is putting in place new software tools to help in its investigations and surveillance activities.
The new tools would help the capital markets watchdog in keeping a close watch on possible manipulative activities in the stock markets In monitoring suspicious trades as also by analysing the information available in the public domain such as on social media and other Internet platforms-According to a senior official. SI ill has identified enhancement of its market surveillance capabilities as a core focus area for the current financial year. "Capacity building for effective integrated surveillance particularly of derivatives market is essential so as to align with the ever-changing market dynamics.
"During the year, special focus will he laid on enhancement of skill sets for using analytical and statistical tools to facilitate effective surveillance." he added.
In the budget estimates for the current fiscal 2014-15. SF.BI has already accounted for the necessary expenses
towards 'software for investigation work and Fraud Intelligence Software', sources said, while adding that this project was currently under implementation.
SEBI has already carried out upgradation of its Integrated Market Surveillance System (IMSS). through which it undertakes its market surveillance functions and collects data tor suspicious market activities through multiple sources, including its network systems at stock exchanges and other market infrastructure institutions.
SEBI also intends to further beef up in due course its Data Warehousing and Business Intelligence System (DWBIS). which is used for speedy .analysis of data and identification of possible violations like insider trading, sources said.
For the time being, an intermediate upgradation is being carried out of the DWIBS tool, while an open tender process in.n be adopted in some lime for further works in this regard.
SEBI already has got a sophisticated surveillance system, which generates at least 100 alerts of suspicious trading activities every day.
After following up on all these alerts on various automated parameters, an estimated 8-10 alerts arc taken for next-level analysis and there-fore investigation and enforcement actions are carried out for necessary cases.
The surveillance systems also track media reports for information being shared among the investors and those are put under scanner dial appear suspicious and in violation to the SI HI regulations and model codes of conduct for various entities, including listed companies and market intermediaries.
SEBI has also set up a Forensic Accounting Cell to tackle corporate frauds by listed firms and market entities. The cell also works towards improving the quality of financial information disclosed by the companies, besides assisting in detection of financial irregularities. To enhance the quality of financial reporting done by listed entities. SEBI has set up a Qualified Audit Report Review (QARC) on which auditing regulator ICAI. Stock exchanges and other stakeholders are also represented.
The new tools would help the capital markets watchdog in keeping a close watch on possible manipulative activities in the stock markets In monitoring suspicious trades as also by analysing the information available in the public domain such as on social media and other Internet platforms-According to a senior official. SI ill has identified enhancement of its market surveillance capabilities as a core focus area for the current financial year. "Capacity building for effective integrated surveillance particularly of derivatives market is essential so as to align with the ever-changing market dynamics.
"During the year, special focus will he laid on enhancement of skill sets for using analytical and statistical tools to facilitate effective surveillance." he added.
In the budget estimates for the current fiscal 2014-15. SF.BI has already accounted for the necessary expenses
towards 'software for investigation work and Fraud Intelligence Software', sources said, while adding that this project was currently under implementation.
SEBI has already carried out upgradation of its Integrated Market Surveillance System (IMSS). through which it undertakes its market surveillance functions and collects data tor suspicious market activities through multiple sources, including its network systems at stock exchanges and other market infrastructure institutions.
SEBI also intends to further beef up in due course its Data Warehousing and Business Intelligence System (DWBIS). which is used for speedy .analysis of data and identification of possible violations like insider trading, sources said.
For the time being, an intermediate upgradation is being carried out of the DWIBS tool, while an open tender process in.n be adopted in some lime for further works in this regard.
SEBI already has got a sophisticated surveillance system, which generates at least 100 alerts of suspicious trading activities every day.
After following up on all these alerts on various automated parameters, an estimated 8-10 alerts arc taken for next-level analysis and there-fore investigation and enforcement actions are carried out for necessary cases.
The surveillance systems also track media reports for information being shared among the investors and those are put under scanner dial appear suspicious and in violation to the SI HI regulations and model codes of conduct for various entities, including listed companies and market intermediaries.
SEBI has also set up a Forensic Accounting Cell to tackle corporate frauds by listed firms and market entities. The cell also works towards improving the quality of financial information disclosed by the companies, besides assisting in detection of financial irregularities. To enhance the quality of financial reporting done by listed entities. SEBI has set up a Qualified Audit Report Review (QARC) on which auditing regulator ICAI. Stock exchanges and other stakeholders are also represented.
Posted in: News 2014
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